C2B – Consumer-to-business – Definition & Meaning
Consumer-to-business (C2B) refers to a type of e-commerce in which consumers initiate transactions by offering products or services to businesses, rather than the traditional model where businesses offer products or services to consumers. In C2B, consumers have the power to set prices and terms for the products or services they offer, and businesses can choose to accept or reject the offer.
An example of C2B is freelance platforms like Upwork or Fiverr, where individuals can offer their skills and services to businesses. On those platforms, businesses can browse through a wide range of offerings and select the best match for their needs and budget. Another example would be a consumer who creates and uploads a viral video on social media and businesses bid on it to advertise their products.
C2B e-commerce allows businesses to access a wide range of products and services at competitive prices and gives consumers the ability to market their skills and services to a larger audience.
C2B transactions can also take place in the form of crowdfunding, where consumers collectively fund a project or a business idea. In this case, the consumer is not only setting the price but also financing a product or service that they want to see in the market.
Overall, C2B e-commerce allows consumers to take a more active role in the economy by actively creating value for businesses, rather than just consuming it.
Some key points about C2B.
- C2B transactions can take place through various online platforms and marketplaces, such as freelance platforms, social media platforms and crowdfunding platforms.
- C2B e-commerce can provide businesses with access to a wider range of products and services, as well as the ability to tap into niche markets that may not be accessible through traditional B2B or B2C channels.
- C2B e-commerce can also provide opportunities for consumers to monetize their skills and expertise, allowing them to earn money by offering products or services to businesses.
- C2B e-commerce can also provide opportunities for consumers to participate in the early stages of product development and shaping the products they want to see in the market through crowdfunding.
- C2B e-commerce can also increase efficiency and lower costs, as businesses can access products and services through digital channels without incurring the costs of traditional brick-and-mortar infrastructure.
- However, C2B e-commerce can also pose some challenges for businesses, including difficulties in verifying the quality and reliability of the products or services being offered, as well as managing the legal and regulatory aspects of the transactions.
- Additionally, C2B e-commerce can pose some risk for both parties, as the transactions are based on trust, and there is no guarantee that the product or service will be delivered according to the agreed terms. As a result, many platforms have implemented features such as buyer and seller ratings, dispute resolution mechanisms, and fraud detection systems to increase the safety and security of transactions.